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4.0 Market Analysis Summary There are customers at both ends of our supply chain that will benefit from our services and products. Municipalities will benefit from our service by having an alternative means of waste disposal. Other potential customers who will benefit from our compost product include turf farms, fertilizer manufacturers, nurseries, landscapers, golf courses, homeowners, and even the federal government for use in highway construction reseeding. Therefore, we have two basic market segments; those waste treatment facilities which will benefit from our services and consumers who will benefit from our product. The Worldwatch Institute reports that landfills are overflowing and the costs of disposing of sewage and garbage is rising. City leaders can relieve over extended municipal budgets, prevent the contamination of drinking water, and help farmers build healthier soils by recycling garbage and human waste back to farms. At least 13 U.S. states have 6 years or less before all of their landfills are completely full. (Paper 135: Recycling Organic Waste: From Urban Pollutant to Farm Resource.) We offer a service by which municipalities can dispose of their waste without it having to be land filled anywhere. This is of great value to this customer. Five major market segments for compost have been identified: Agriculture (for food and nonfood crops and sod farms). Landscapers (for industrial and commercial properties; golf courses, cemeteries, and athletic fields; landfill covers; and damaged soils). Nurseries (for plant and forest seedling crops and reforestation projects). Public agencies (for highway median strips, parks, recreational areas, and other public property). Residents (for home landscaping and gardening).

4.1 Market Segmentation The following table shows information regarding the number of potential customers in our target markets. This data is based on information taken from superpages.com. As reflected in the table, there are approximately 34 waste treatment plants in West Virginia. These are all potential customers for our collection service and sources of material for compost processing. Additionally, there are a total of 1,779 potential customers in the initial target market for our compost product. This includes 11 fertilizer manufacturers, approximately 30 sod/turf farms, 324 nurseries, 483 golf courses, and 931 landscapers.

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Municipalities with treatment plant Compost users Other

4.2 Target Market Segment Strategy To target our customers, we examined the market trendsThis market growth is fueled by a more health conscious consumer. People are better informed about the potential side effects associated with chemical fertilizer products both to their health and to the environment. 4.2.1 Market Needs Several companies compete in the fertilizer market. Their major selling points are performance and price. However, health conscious consumers have created growing competition between chemical and organic products. CochinCleanRecycling's competition can be divided into two forms: direct and indirect. Our direct competitors would include other compost producers capable of producing sufficient product to supply the growing compost demand. There is no other compost producer in West Virginia that meets this need. Therefore, we have no direct competition in the state. Additionally, there are only a handful in the entire CochinCleanUSA; therefore, our direct competition on a regional basis is extremely limited. Our indirect competitors are fertilizer manufacturers (who also are a part of our target market). As noted elsewhere in this business plan, the trend is away from chemical fertilizers, toward natural organic soil enhancers. Thus the market for chemical fertilizer is decreasing while our market is increasing. 4.2.2 Market Trends Current trends in the market greatly favor the start-up of our recycling business. Laws have been passed in West Virginia placing greater restrictions of the types of landfills which can receive human waste sludge. These laws take effect in 2008. Municipalities are already seeking alternative means of disposal as disposal prices are expected to skyrocket as

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landfill space decreases dramatically. Our recycling service solves this problem for municipalities.

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4.2.3 Market Growth The possibility of growth in this market is realistically huge. Consider the following simple facts: Municipalities must have an alternative means for disposing of human waste; we offer a great alternative to meet that need. Market trends are skewing more and more toward organic soil enhancements and away from chemical fertilizers; we meet this need as well. We have no direct competition in West Virginia and very little in the CochinCleanregion.

All of this means that CochinCleanRecycling is poised to see tremendous growth. 4.3 Service Business Analysis Our service offers a feasible, even desirable, alternative to traditional means of disposing of human waste. Our product is a value added, soil enhancer that appeals to the growing environmental conscientiousness among consumers. Direct competition is almost nonexistent. We intend to position ourselves as the logical, economical choice for human waste disposal and compost production in West Virginia and the CochinCleanregion. 4.3.1 Distributing a Service Indirect competitors are those companies that offer only chemical soil enhancers and plant foods. CochinCleanRecycling feels that these companies are an indirect form of competition because though the products they promote attempt to give the same results as our direct competition, they fall far short of current market expectations, and it will only be a matter of time until these companies' products will be out-dated. Even so, CochinCleanRecycling does acknowledge that as these companies' products become outdated, many companies will be certain to phase-in their own organic substitutes in place of the chemicals. This, in itself, presents a potential market for our compost. 4.3.2 Competition and Buying Patterns To be a player in the organic fertilizer and soil produce market, CochinCleanRecycling identified market needs to gain an overall competitive advantage. The following explains our product's competitive advantages. Our product is:

Organic: Our organic product allows us to be responsive to the dominant market trend. We offer all of the advantages that organic products have over chemical competitors. Comparable application times: Based on the West Virginia University laboratory analysis, our product is comparable in potency to chemical fertilizer. Thus the application time is also comparable, which saves money and labor since there is no need to purchase and apply additional products. Recycled: This part of our product has to do with marketing. We are a company that cares about the consumer and the environment. We offer a valuable product, at low cost, that saves landfill space.

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4.3.3 Main Competitors As noted earlier, direct competitors are essentially non-existent in the CochinCleanregion. Our major indirect competitors are chemical fertilizer manufacturers. However, their products are more costly and do not address the market's trend toward organic, natural soil enhancers. Some municipalities have begun composting operations in an attempt to deal with waste disposal issues. They typically use a method in which sludge is placed on the ground in windrows which are turned periodically for aeration. This is an inefficient method of composting primarily because it is slow, taking 90 or more days, which means that availability is uncertain for consumers. Also, in this composting method high enough temperatures are not achieved to kill harmful bacteria and seeds that may sprout into weeds. Additionally, municipalities are not businesses, which means their marketing capabilities are limited. Their market primarily consists of local homeowners and businesses, which ignores the greater market. Also, this composting method requires a lot of ground space which restricts the operation. Finally, odor can be a problem for municipalities due to nearness of local residents or businesses. For these reasons, municipality composting efforts are not considered a competitive threat. 4.3.4 Business Participants CochinCleanRecycling's direct competition includes companies that produce an organic soil enhancement product. Organic soil enhancers are no longer a niche market. They have grown into a strong sub-market in the fertilizer and soil enhancement industry, and they now present significant competition for chemical fertilizer competitors. Major direct competition includes FSH, makers of Holy Cow Compost, and Scott's, makers of Iron Bull. Other examples of competing products are Monkey-Doo, Roots Organic, and Milorganite, the original (75 years) sewage sludge based organic fertilizer. 5.0 Strategy and Implementation Summary We have clearly defined our target markets and have differentiated ourselves by offering a unique solution to our customers' needs. The primary focus of our marketing strategy must be to increase sales and profitability business quickly. This can be achieved by face-to-face contact, and an effective publicity and promotion campaign. 5.1 Value Proposition Our value proposition is two-fold.

Value proposition for municipalities: We offer a service that is a cost effective, budget saving means to addressing a growing waste disposal problem. Value proposition for end users of compost material: Compost is a valuable soil amendment that improves many soil properties, such as porosity, structural and thermal stability, water retention, resistance to wind and water erosion, and tillage. Compost also decreases soil crusting, regulates storage and release of nutrients, enhances the development of beneficial microorganisms, builds up plant resistance to parasites and disease, and promotes faster root development. Plants and crops treated properly with compost may produce higher yields and have less weed growth. Chemical fertilizers do not offer this value.

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5.2 Competitive Edge The competitive edges we have are summarized as follows.

Cost: The price of our compost product is much less than chemical fertilizers. Organic product: We offer an organic product which is responsive to current market trends. This includes all of the advantages organics offer over chemicals. Recycled: Recycled products characterize a "caring company" and are more appealing to the customer's changing attitude toward organic fertilizer as opposed to chemical fertilizer. Elimination of disposal issues: Municipalities now have a waste that takes up landfill space. Our service recycles the waste which saves valuable landfill space. More effective between application times: Normal times between applications can range from two to four weeks. Our product lasts for many months, thereby saving the customer time and money (no additional expenditure for more product). HUBZone location: Provides advantage in selling to the government. SDB and 8(a) certifications: Provide additional advantages in selling to the government.

5.3 Marketing Strategy The marketing strategy is the core of the main strategy: 1. Emphasize high value, high quality products and services. 2. Build a relationship oriented business. 3. Focus on municipalities, fertilizer manufacturers, landscapers, nurseries, and the federal government as key initial markets.

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5.3.1 Promotion Strategy Our promotional strategy will be two-fold: first phase promotion will focus on before, during, and six months following our opening; the second phase of promotion will deal with the long term. The purpose of the first phase is to assist with rapid market entry to ensure early and sustained profitability. The purpose of the second phase is to ensure long-term growth and help propel us toward achieving our goal of expanding state wide and across the CochinCleanregion. First Phase Promotions

Publicity: We will send news releases to all of the major newspapers in West Virginia. Publication of news articles about CochinCleanRecycling will lend great credibility and be an excellent way to let all target markets know about this new, innovative business and the solutions it provides for municipalities and users of compost or fertilizers. We will similarly seek publicity in the form of news stories from local (eastern West Virginia) radio and television stations. Advertising: We will utilize direct mail and face-to-face promotional strategies to raise awareness about our products and services in the target markets. Newspaper advertising may also be used. Radio and television ads are not certain, we will evaluate their effectiveness before further implementation. Internet: We will have a content heavy website geared toward educating potential customers about the benefits of our products and services. All literature, business cards, etc. will include our website and e-mail address information. Alliances: We intend to form alliances with fertilizer manufacturers to use our product in their fertilizer and/or distribute our product for us.

Second Phase Promotions

Publicity: As the business grows and expands we will continue to seek publicity through news media to tout our successes. Advertising: We will continue to make face-to-face contact with customers and potential customers. Mail-outs will be done again within a few months of start up. The second round of mail outs will be updated to reflect the benefits provided to customers thus far. Such mail-outs will be sent periodically. Internet: We will continue to have a comprehensive website. The website will be updated to provide responses to frequently asked questions. After the first six months, and certainly after the first year, we will evaluate the viability of having target clients advertise on our site, and conversely, we will evaluate viability of advertising on our target clients websites (if applicable). Alliances: We will continue to seek mutually beneficial and complementary alliances with manufacturers where applicable.

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5.4 Sales Strategy

CochinCleanRecycling's sales strategy is relatively straightforward. Get the word out about our products and services to potential customers, educate them as to the value added by our products and services, and the product/service will sell itself. Our present management team will become the main sales force when operations begin. CochinCleanRecycling's sales force will increase as business demand permits. In the first six to twelve months of operations, our sales team will focus its efforts on municipalities, fertilizer manufacturers, farmers, small nurseries and other related companies. The team will promote the products based on their environmental strengths and extended duration. CochinCleanRecycling will use other channels of selling after the first year. Face-to-face contact and direct mail selling are part of the selling plan. 5.4.1 Sales Forecast The table below outlines the sales forecast and cost of goods sold. The forecast is based on reasonable sales projections within this very large market. An additional revenue stream will be the collection and removal of sawdust, wood chip, and bark from the International Paper Company on a full time basis; the contract for this work has been won. The sawdust materials collected will be used in the composting process. The high growth is based on our plans to expand by increasing operations in Monroe County and placing similar facilities in other areas of the West Virginia. We anticipate that by 2005 we will have two such facilities and by 2006 we anticipate having four. Thus our sales forecast doubles in each of those years.

5.5 Milestones The following table lists important program milestones, with dates and managers in charge, and budgets for each. The milestone schedule indicates our emphasis on planning for implementation. Table: Milestones

Milestones Milestone Complete business plan Recieve all funding Site preparation Form LLC Composter set up Order/fabricate composters Hire staff Begin production Start Date 10/7/2003 11/24/2003 3/1/2004 2/15/2004 3/15/2004 2/15/2004 3/1/2004 3/15/2004 End Date 12/1/2003 2/29/2004 3/15/2004 3/15/2004 3/30/2004 3/30/2004 5/30/2004 3/30/2005 Budget $0 $0 $0 $500 $0 $480,000 $16,680 $0 Manager O. Pyne O. Pyne O. Pyne O. Pyne O. Pyne O. Pyne O. Pyne O. Pyne Department Department Department Department Department Department Department Department Department

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Totals $497,180

Chart: Milestones

Milestones
Complete business plan Recieve all funding Site preparation Form LLC Composter set up Order/fabricate composters Hire staff Begin production Q4 `03 Q1 `04 Q2 Q3 Q4 Q1 `05

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6.0 Web Plan Summary Our website will be the virtual business card and portfolio for the company, as well as its online "home." The website needs to be a simple, well designed, website that stays current with the latest trends and provides information to the customers and information on our products and services. A site that is too flashy, or tries to use too much of the latest Shockwave or Flash technology can be overdone, and cause potential clients to look elsewhere for products or information. Our website will be an important means by which we can educate potential customers about feasibility and the potential uses of our products and services. 6.1 Development Requirements Our website will be initially developed with few technical resources. A hosting provider will host the site and provide the technical back end. A website design firm will design all website graphics and layout. 7.0 Management Summary Mr. Oliver Pyne is the mind behind CochinCleanRecycling. He saw the need for human waste sludge to be recycled and used in several different and environmentally beneficial ways. With the development, determination, motivation, and persistence of everyone involved, CochinCleanRecycling will be the leading producer of composted human waste sludge in West Virginia and a leader in the CochinCleanregion. The management team of CochinCleanRecycling will be comprised of the following executive positions:

President: Oliver Pyne. Mr. Pyne has a degree in Agriculture from West Virginia University and has spent 30 years in the farming and agriculture industry. He has extensively researched and tested this composting process to ensure that it works with human waste sludge, and is thoroughly familiar with the process from start to finish. Mr. Pyne has experience in the operation, fabrication and maintenance of heavy equipment. This ability will be critical to the success of the business. Operations Manager: Sam Cole. Mr. Cole has operated a landscaping firm for 7 years and is intimately familiar with the uses of compost materials as well as the markets. Controller: Alexander Main. Mr. Main has a background in business and management and will handle administrative details such as taxes, check writing and bookkeeping.

At CochinCleanRecycling, the management team believes that this unique way of recycling will change the way consumers look at fertilize and compost products. As with any company, the responsibilities and duties of the management team are very important and cannot be taken lightly. CochinCleanRecycling's management will work together as a team to create a successful company.

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